Here We Go Again: Scams Targeting Business Owners Are on the Rise
Last year we issued an alert that scammers had come up with a new twist on old scam to collect data and unnecessary payments from owners of state registered businesses.
Specifically, business owners in Maine and other states were receiving fraudulent notices relating to annual report and other filings. Well, annual report season is fast-approaching, and the scammers are at it again. These fake solicitations appear to be official government forms, but they are not. The scammers create a false sense of urgency by providing incorrect filing deadlines and requesting prompt payment.
If you receive such a notice, we recommend you contact legal counsel before responding or remitting payment. Specific attributes to look for include:
A filing date inconsistent with legitimate filing deadline with relevant government agency
Most states have standard filing deadlines.
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In Maine, annual reports are due June 1.
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In Massachusetts, annual reports for corporations are due March 15, and annual reports for LLCs are due on the anniversary of the LLC’s formation date.
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In Rhode Island, the filing deadline for most entities is May 1.
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In New Hampshire, the filing deadline is April 1.
If the form reports an incorrect deadline, the notice is likely a scam.
Fee is inconsistent with legitimate filing fee
As with filing deadlines, most states have uniform fees.
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In Maine, the filing fee for an annual report is $85 for domestic business entities and $35 for nonprofits.
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In Massachusetts, the filing fee for an annual report is $110 for corporations, $25 for nonprofits, and $520 for LLCs.
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In Rhode Island, the filing fee for most entities is $52.50.
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In New Hampshire, the filing fee is $102.
Some scammers are requesting payments as high as 500% of the statutory filing fees.
Illegitimate contact information
Illegitimate email addresses and addresses not associated with a government office are indicators that the form is a scam.
If you have engaged Pierce Atwood to provide annual corporate maintenance services for your business, do not respond to a filing request without contacting us first. We will file your annual reports with the secretary of state for you. We do not currently file business ownership information reports with FinCEN on behalf of our clients, but we are happy to assist with evaluating whether such reports are required or subject to an exception.
If you have questions regarding any notices you receive, or if you are concerned that a document mailed to you may be illegitimate, please reach out to Matt Stein, Madeleine Fenderson, or your Pierce Atwood attorney.